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The special committee of independent directors (the "Special Committee") of Aurora Energy Resources Inc. ("Aurora" or the "Company") (AXU:TSX) today acknowledged that Fronteer Development Group Inc. ("Fronteer") has announced that it has filed with securities regulators in Canada and the United States and has commenced the mailing of its formal offer (the "Fronteer Offer") to acquire all of the common shares of Aurora that it does not already own on the basis of 0.825 of a Fronteer common share for each Aurora common share. The Fronteer Offer will expire at 8:00 p.m. (Toronto time) on March 2, 2009, unless extended or withdrawn, and is subject to certain conditions.
As previously announced, the Special Committee has retained National Bank Financial Inc. as its financial advisor to give it financial and strategic advice in connection with the Fronteer Offer in its efforts to maximize shareholder value. National Bank Financial Inc. has commenced a process of canvassing potential parties to identify possible alternative transactions that would provide greater value to shareholders than the Fronteer Offer, although there can be no assurance that any such alternative transaction will emerge. National Bank Financial Inc. will also assess the fairness of the Fronteer Offer consideration, from a financial point of view, to the Company's shareholders, other than Fronteer and its affiliates.
There is no immediate urgency for Aurora shareholders to do anything with respect to the Fronteer Offer. The Aurora Board of Directors will communicate further with shareholders prior to the expiry of the Fronteer Offer, including the mailing of a directors' circular to shareholders, so that Aurora shareholders will have updated information in deciding whether or not to tender to the Fronteer Offer. The Special Committee advises Aurora shareholders to defer making any decision with respect to the Fronteer Offer until the Aurora Board of Directors formally communicates its position on the Fronteer Offer.
ABOUT AURORA
Aurora is a uranium exploration and development company active in the Central Mineral Belt of coastal Labrador - one of the world's most promising uranium districts - and in Nunavut, Canada, where it has acquired an interest in the Baker Lake Basin property.
Aurora has no debt and approximately C$99 million in cash that is fully liquid and held with a large Canadian commercial bank.
Aurora is committed to responsible development, which includes community consultation, lasting local benefits and the highest standards of safety, health, and environmental protection.
For further information on Aurora, please contact:
Bruce Dumville
President & CEO
(709) 726-2223
Andrea Marshall
Manager, Government and Media Relations
(709) 726-2223
Don Falconer
VP Corporate Development
(416) 362-5556
www.aurora-energy.ca
Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking statements". Such forward-looking statements, including but not limited to the Fronteer Offer, any possible alternative transaction, the timing and level of exploration activities, including drilling activities, the timing of completion of a pre-feasibility study and anticipated results of the 2008 work program; involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Aurora to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the Fronteer Offer not being completed, the terms of the Fronteer Offer, the lack of any alternative transaction, the terms of any alternative transaction, the actual results of current exploration activities, conclusions of economic evaluations, uncertainty in the estimation of mineral resources, changes in project parameters as plans continue to be refined, future prices of uranium, economic and political stability in Canada, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, and government regulation as well as those factors discussed in the section entitled "Risk Factors" in Aurora's Annual Information Form on file with the Canadian Securities Commissions. Although Aurora has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Aurora disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers should not place undue reliance on forward-looking statements. |